Method and Apparatus for Determining an Optimal Sharing Mix in a Shared Prescription Savings Plan

1. A computer-implemented method for determining an optimal sharing mix in a shared savings prescription plan, comprising: (a) storing in a computer storage of a computer a first drug group and a second drug group, wherein the drugs of the first drug group and the drugs of the second drug group are at least one of the following: formulary, chemical, physical, or therapeutic equivalents of each other, and the first and second drug groups each include one or more prescriptions; (b) a processor of the computer determining a total estimated cost to an insuring entity for the first drug group and a total estimated cost to the insuring entity for the second drug group; (c) the processor of the computer determining a first estimated savings rate associated with utilizing the second drug group versus the first drug group; (d) the processor of the computer determining a first estimated distribution amount as a function of the first estimated savings rate and the total estimated cost to the insuring entity for the first drug group; (e) the processor of the computer allocating the first estimated distribution amount to at least one of the following: the insuring entity, at least one member entity insured by the insuring entity, a plan facilitating entity, and a physician entity based upon one or more predetermined percentages; and (f) the processor of the computer determining an estimated physician entity amount and distributing the estimated physician entity amount to a designee of the physician entity wherein the physician entity is participating in the shared savings prescription plan, and wherein the estimated physician entity amount is determined as a function of the first estimated distribution amount and a physician entity share rate.

2. The computer-implemented method of claim 1 , further comprising at least one of the following steps: (g) the processor of the computer determining an estimated insuring entity amount to be distributed to the insuring entity upon election by the insuring entity to participate in the shared savings prescription plan, wherein the estimated insuring entity amount is determined as a function of the first estimated distribution amount and an insuring entity share rate; (h) the processor of the computer determining an estimated member entity amount to be distributed to the member entity in the form of a credit, cash, or a check upon election by the member entity to participate in the shared savings prescription plan, wherein the estimated member entity amount is determined as a function of the first estimated distribution amount and a member entity share rate; and (i) the processor of the computer determining an estimated plan facilitating entity amount for distribution to the plan facilitating entity upon election by the plan facilitating entity to participate in the shared savings prescription plan, wherein the estimated plan facilitating entity amount is determined as a function of the first estimated distribution amount and a commission rate.

3. The computer-implemented method of claim 2 , wherein at least one of the insuring entity amount, the member entity amount, the plan facilitating entity amount, and the physician entity amount is distributed to the insuring entity, the member entity, the plan facilitating entity, and the physician entity, respectively.

4. The computer-implemented method of claim 1 , wherein: the total estimated cost to the insuring entity for the first drug group is determined by summing costs of all prescriptions prescribed in the first drug group; and the total estimated cost to the insuring entity for the second drug group is determined by summing estimated costs of the drugs in the second drug group.

5. The computer-implemented method of claim 4 , wherein the first estimated savings rate is determined by taking a difference between the total estimated cost to the insuring entity for the second drug group and the total estimated cost to the insuring entity for the first drug group and dividing said difference by the total estimated cost to the insuring entity for the first drug group.

6. The computer-implemented method of claim 5 , wherein the first estimated distribution amount is determined by multiplying the first estimated savings rate by the total estimated cost to the insuring entity for the first drug group.

7. The computer-implemented method of claim 1 , wherein the first estimated distribution amount is representative of savings realized over a predetermined period of time by utilizing the second drug group versus the first drug group.

8. The computer-implemented method of claim 1 , further comprising the processor of the computer facilitating a co-payment from the member entity to a pharmaceutical entity.

9. A computer-readable medium having stored thereon instructions which, when executed by a processor of a computer, causes the processor to: identify a first drug group and a second drug group stored in a computer storage of the computer, wherein the drugs of the first drug group and the drugs of the second drug group are one of the following: formulary, chemical, physical or therapeutic equivalents of each other, and the first and second drug groups each include one or more prescriptions; determine a total estimated cost to an insuring entity for the first drug group and a total estimated cost to the insuring entity for the second drug group; determine a first estimated savings rate associated with utilizing the second drug group versus the first drug group; determine a first estimated distribution amount as a function of the first estimated savings rate and the total estimated cost to the insuring entity for the first drug group; and allocate the first estimated distribution amount to a designee of a physician entity and at least one of the following: the insuring entity, at least one member entity insured by the insuring entity or a plan facilitating entity, based upon one or more predetermined percentages.

10. The computer-readable medium of claim 9 , wherein the instructions further cause the processor to: determine an estimated insuring entity amount as a function of the first estimated distribution amount and an insuring entity share rate; determine an estimated member entity amount as a function of the first estimated distribution amount and a member entity share rate; determine an estimated plan facilitating entity amount as a function of the first estimated distribution amount and a commission rate; and determine an estimated physician entity amount as a function of the first estimated distribution amount and a physician entity share rate.

11. The computer-readable medium of claim 10 , wherein the estimated insuring entity amount, the estimated member entity amount, and the estimated plan facilitating entity amount, and the estimated physician entity amount are distributed to the insuring entity, the at least one member entity, the plan facilitating entity, and the designee of the physician entity, respectively.

12. The computer-readable medium of claim 10 , wherein the instructions further cause the processor to perform the step of displaying at least one of the estimated entity amounts.

13. A computer-implemented method for determining an optimal sharing mix in a shared savings prescription plan, comprising: (a) storing in a computer storage of a computer a first drug group and a plurality of second drug groups, wherein the drugs of the first drug group and the drugs of each second drug group are at least one of the following: formulary, chemical, physical, or therapeutic equivalents of each other, and the first and second drug groups each include one or more prescriptions; (b) a processor of the computer determining a total estimated cost for the first drug group and a total estimated cost for each second drug group; (c) the processor of the computer determining for each second drug group an estimated savings rate associated with utilizing the second drug group versus the first drug group; (d) the processor of the computer determining for each second drug group an estimated distribution amount for the second drug group as a function of the estimated savings rate for the second drug group and the total estimated cost for the first drug group; (e) the processor of the computer allocating the estimated distribution amount for each second drug group to plural entities based upon a predetermined percentage for each entity; and (f) the processor of the computer determining for each entity an estimated entity amount to be distributed to said entity or said entity's designee upon election by said entity to participate in a shared savings prescription plan for one of the second drug groups, wherein the estimated entity amount is determined as a function of a share rate for said entity and the estimated distribution amount determined for the second drug group of the elected plan, wherein one of said entities is a physician and said physician's estimated entity amount is distributed to a designee of said physician.

14. The computer-implemented method of claim 13 , further comprising: (g) storing in the computer storage a compliance rate representative of an estimated percentage of members that comprise one of said entities that are likely to participate in the shared savings prescription plan; (h) storing in the computer storage for each second drug group a probability representative of an estimated percentage chance that the second drug group will be chosen by said members; (i) the processor of the computer modifying the estimated distribution amount for each second drug group as a function of the compliance rate, the probability determined for the second drug group in step (h), and the estimated distribution amount determined for the second drug group in step (d); and (j) the processor of the computer allocating each estimated distribution amount determined in step (i) to the plural entities based on the predetermined percentage for each entity, wherein the estimated entity amount in step (f) is determined as a function of either the estimated distribution amount determined in step (d) or the estimated distribution amount determined in step (i).

15. The computer-implemented method of claim 14 , wherein the plural entities further include: an insuring entity; and a plan facilitating entity.

16. The computer-implemented method of claim 14 , further comprising: (k) adjusting in the computer storage the probability for each second drug group; (l) the processor of the computer modifying the estimated distribution amount for each second drug group as a function of the adjusted probability for the second drug group in step (k); and (m) the processor of the computer allocating each estimated distribution amount determined in step (l) to the plural entities based on the predetermined percentage for each entity, wherein the estimated entity amount in step (f) is determined as a function of either the estimated distribution amount determined in step (d), the estimated distribution amount determined in step (i), or the estimated distribution amount determined in step (l).

17. The computer-implemented method of claim 1 , wherein the first drug group is comprised of plural prescription drugs that were acquired over a predetermined time interval.

18. The computer-implemented method of claim 13 , wherein one of said entities includes at least one member and said member's estimated entity amount is distributed to said member in the form of a credit, cash, or a check.

19. The computer-implemented method of claim 13 , further comprising: incrementally adjusting a share rate of one of said plural entities until a total estimated cost to another of said plural entities is minimized, wherein said adjusting results in modification of the estimated entity amount to be distributed to each of said plural entities; and distributing to at least one of said plural entities, said entity's modified estimated entity amount.

20. The computer-implemented method of claim 13 , further including the processor of the computer modifying the estimated distribution amount for each second drug group by a compliance rate and a probability, wherein the compliance rate is representative of an estimated percentage of members that comprise one of said entities that are likely to participate in the shared savings prescription plan, and the probability is representative of an estimated percentage chance that the second drug group will be chosen by said members, and wherein the estimated physician entity amount to be distributed in step (f) is determined as a function of either the modified estimated distribution amount or the estimated distribution amount determined in step (d).

21. The computer-implemented method of claim 20 , further comprising the processor of the computer incrementally adjusting a savings share rate for said members until a weighted average estimated distribution amount for all of the second drug groups is maximized.